This guide covers implementation, configuration, daily use and troubleshooting for Small Business Management – Accounting Free.
Small Business Accounting Free User Guide and Tutorial
This manual teaches daily use from first customer through quote, invoice, payment, expense, statement and reporting. Each chapter explains what the screen represents, how the workflow works, what to enter and how to verify the result.
1. Learn the daily workflow
Always open and review the related record before creating a new one. Search for the customer, confirm the invoice, and use the real payment reference. Most accounting mistakes are duplicate or mislinked records rather than calculation errors.
2. Dashboard and contextual navigation
The dashboard summarises activity and provides shortcuts. Every Accounting page includes a Back button and tabs for related screens. For example, Quotes, Invoices and Payments belong to Invoice & Get Paid. The current screen is highlighted, so you can move between the workflow without returning to the WordPress sidebar.
Add this image immediately after completing or explaining the preceding section.
- Screen to capture: Accounting Free → Dashboard.
- Required state: Use representative demo records so the recent-activity areas are populated.
- Must include: Workflow shortcuts, recent quotes/invoices/payments, status summaries, Back button and category tabs.
- Redact or avoid: Real customer names and financial values.
- Suggested caption: The Accounting Free dashboard provides shortcuts and a summary of recent work.
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3. Customers: the centre of the sales history
A customer record is more than an address book entry. It connects quotes, invoices, payments and statements. Use one record per actual customer account unless the business deliberately maintains separate billing accounts.
| Field or setting | What it controls | Practical guidance |
|---|---|---|
| Company and contact name | Who the account belongs to and the person you communicate with. | Use the legal or recognised trading name. |
| Email addresses | Where quotes, invoices and statements are sent. | Confirm spelling; include only authorised recipients. |
| Phone and address | Customer contact and billing details. | Keep these current before sending documents. |
| Payment terms | Customer-specific due-date expectation where available. | Use only approved exceptions to the company default. |
Create a customer
- Open Accounting → Customers.
- Search first to confirm the customer does not already exist.
- Choose Add Customer.
- Enter the company or person name and billing contact.
- Add the correct email address, phone and billing address.
- Save and reopen the record to verify it.
The customer appears once in the list and can be selected on a quote or invoice.
Review a customer account
- Open the customer record.
- Review the transaction history for quotes, invoices and payments.
- Open any disputed invoice from the history rather than searching globally.
- Use Customer Statements for a period view of the account.
You understand what was issued, what was paid and what remains outstanding.
Add this image immediately after completing or explaining the preceding section.
- Screen to capture: Customers → open one customer record.
- Required state: Use a customer with at least one quote, invoice and payment.
- Must include: Contact details, payment terms, linked document history and current balance.
- Redact or avoid: Real address, phone, email and tax identifiers.
- Suggested caption: A customer record connects contact information to quotes, invoices, payments and statements.
Editor note: replace this complete placeholder with a responsive image and keep the suggested caption as the figure caption.
4. Products and services
Products and services are reusable sales lines. A well-configured item saves typing and keeps document descriptions, prices, tax treatment and reporting consistent.
| Field or setting | What it controls | Practical guidance |
|---|---|---|
| Code | Short internal or customer-facing identifier. | Use a stable code such as WEB-SUPPORT. |
| Name | The item displayed in selectors and documents. | Make it specific enough to recognise. |
| Short description | Compact explanation used in lists. | Describe the outcome in one sentence. |
| Long description | Detailed customer-facing scope. | Use clear deliverables and exclusions where appropriate. |
| Price and cost | Selling price and optional internal cost. | Check whether values are tax-inclusive or tax-exclusive according to settings. |
| Product type / stock fields | Whether the item is a service or stock-aware physical item. | Use stock fields only for physical items. |
Create a service
- Open Products & Services and choose Add.
- Select or create the appropriate category.
- Enter code WEB-SUPPORT and name Monthly Website Support.
- Add a short description and a detailed scope.
- Set the price and correct tax treatment.
- Select the relevant income account and save.
The service can be added to quotes and invoices with consistent wording and pricing.
Add this image immediately after completing or explaining the preceding section.
- Screen to capture: Products & Services → edit a sample item.
- Required state: Show a service or product with complete category, price and tax settings.
- Must include: Type, category, short description, price, tax treatment and income-account selection.
- Redact or avoid: Supplier cost if commercially sensitive.
- Suggested caption: Configure products and services once so quotes and invoices can reuse consistent details.
Editor note: replace this complete placeholder with a responsive image and keep the suggested caption as the figure caption.
5. Quotes: propose before you charge
Quote
A commercial proposal showing what you plan to supply and the expected price. A quote does not create an amount owed until it is converted into an invoice.
Example: A customer asks for a support package. You send a quote and wait for acceptance before invoicing.
Create and send a quote
- Open Invoice & Get Paid → Quotes and choose Add Quote.
- Select the customer.
- Add one or more products or services.
- Review quantity, unit price, discount and tax on every line.
- Set the issue date and validity period.
- Save the draft.
- Preview the public quote and read it as the customer would.
- Send the quote email.
The quote status shows it was sent and the customer receives a secure public link.
When a quote changes, save a new version instead of overwriting the commercial history without explanation. The version history lets you see what changed and restore an earlier version when required.
Accept and convert a quote
- Open the customer’s public quote link in a private browser window.
- Use the Accept action and submit the decision.
- Return to WordPress and confirm the accepted status and decision record.
- Choose Convert to Invoice.
- Review the resulting invoice rather than sending it immediately.
An invoice is created using the accepted quote’s customer and line items.
Add this image immediately after completing or explaining the preceding section.
- Screen to capture: Use an annotated two-image composite: internal Quote editor and public customer quote page.
- Required state: Show multiple line items and an active public decision link.
- Must include: Customer, issue/valid-until dates, line items, totals, notes, Accept and Reject controls.
- Redact or avoid: Public token in the browser address and real customer information.
- Suggested caption: Create the quote internally, then let the customer review and accept or reject it securely.
Editor note: replace this complete placeholder with a responsive image and keep the suggested caption as the figure caption.
6. Invoices: create an amount due
Invoice
A formal request for payment. The total, payments and credits determine the remaining balance.
Example: An invoice for 1,000 with a payment of 400 has a remaining balance of 600 and should show partial status.
Create an invoice directly
- Open Invoices and choose Add Invoice.
- Select the customer.
- Add products or services and confirm descriptions.
- Check issue date, due date and payment terms.
- Review line discounts, invoice discount, tax and total.
- Save as draft.
- Preview the public invoice and payment instructions.
- Send the invoice only after the preview is correct.
The invoice is sent with the correct customer, amount, due date and public link.
Record the payment. The system calculates the balance and updates the invoice status from the payment records. A paid status without a payment trail weakens statements and auditability.
7. Payments: record what was actually received
Free records manual payment methods such as EFT, cash, manually processed card payments, debit orders and other offline methods. It does not itself process online gateway payments.
Record a full payment
- Open Payments and choose Record Payment.
- Select the correct invoice.
- Confirm the customer, invoice number and outstanding balance.
- Enter the amount actually received.
- Select the method, payment date and bank/reference number.
- Save once and wait for confirmation.
- Use View Invoice to confirm a zero balance and paid status.
The payment appears in the payment list, the invoice balance is zero and the customer statement includes the payment.
Record a part payment
- Open the unpaid invoice or Payments screen.
- Enter only the amount received, not the invoice total.
- Save with the real reference.
- Confirm the invoice changes to partial and the remaining balance is correct.
- Repeat only when a later payment is actually received.
The invoice remains open with an accurate remaining balance.
Add this image immediately after completing or explaining the preceding section.
- Screen to capture: Open an invoice after recording a payment smaller than the invoice total, plus the related payment record.
- Required state: Use a clearly labelled sample invoice with a remaining balance.
- Must include: Invoice total, amount paid, balance, payment date, method and payment reference.
- Redact or avoid: Real bank reference or card information.
- Suggested caption: A part payment reduces the invoice balance without marking the invoice fully paid.
Editor note: replace this complete placeholder with a responsive image and keep the suggested caption as the figure caption.
8. Expenses and supplier evidence
Expense
A cost incurred by the business. The expense record carries the accounting information; the receipt or supplier invoice supports it.
Example: A monthly software subscription is recorded under Software and may include a PDF supplier invoice.
Capture an expense
- Open Expenses and choose Add Expense.
- Enter the transaction date and supplier.
- Select the correct expense account.
- Enter the amount and tax information exactly as supported by the document.
- Add a useful reference and notes.
- Upload a JPEG, PNG or PDF document of 10 MB or less if available.
- Save and reopen the expense to verify it.
The expense appears in the correct period and category, with the supporting document available to authorised users.
Add this image immediately after completing or explaining the preceding section.
- Screen to capture: Expenses → open a completed sample expense.
- Required state: Attach a non-sensitive sample receipt or invoice.
- Must include: Supplier, date, category/account, amount, tax treatment, notes and attachment control.
- Redact or avoid: Real supplier banking data and personal card information.
- Suggested caption: Capture the expense classification and retain the supporting supplier document.
Editor note: replace this complete placeholder with a responsive image and keep the suggested caption as the figure caption.
9. Customer Statements
A statement summarises a customer account over a selected period. It should show opening balance, invoices, payments and closing balance. A statement does not replace an invoice; it helps the customer understand the account as a whole.
Prepare a statement
- Open Customer Hub → Customer Statements.
- Select the customer and date period.
- Review the opening balance and every transaction line.
- Confirm the closing balance agrees with the customer account.
- Preview or send the statement according to company procedure.
The customer receives a period summary that can be reconciled to individual invoices and payments.
Add this image immediately after completing or explaining the preceding section.
- Screen to capture: Customer Statements → generate one statement for a sample period.
- Required state: Use a customer with an opening balance, invoice, payment and closing balance.
- Must include: Period filter, transaction dates, document references, debits, credits and balance.
- Redact or avoid: Real customer contact details.
- Suggested caption: A customer statement explains how the account balance changed during the selected period.
Editor note: replace this complete placeholder with a responsive image and keep the suggested caption as the figure caption.
10. Payment Follow-up
Payment Follow-up helps identify invoices requiring collection action. It is a manual helper in Free. Review the invoice and customer history before contacting the customer. Keep communication factual: invoice number, issue date, due date, amount and current balance.
Follow up an overdue invoice
- Open Payment Follow-up.
- Identify the overdue invoice.
- Open the invoice and confirm no payment was recorded under another reference.
- Review previous communication and the customer statement.
- Send or prepare a professional reminder using the verified balance.
- Record follow-up activity according to internal procedure.
The customer is contacted with accurate information and the accounting record remains unchanged until money is received.
11. VAT Lite
VAT Lite is a management summary of sales and expense tax values for a selected period. It does not make legal filing decisions. The quality of the summary depends on correct tax treatment on every invoice and expense.
Review a VAT period
- Open Expenses & Tax → VAT Lite.
- Select the reporting period used by the business.
- Compare sales tax to invoice records.
- Compare purchase/expense tax to supporting expense records.
- Investigate unusual or missing transactions.
- Export the summary for accountant review where required.
The summary is internally consistent and ready for review, not automatically treated as a filed return.
Add this image immediately after completing or explaining the preceding section.
- Screen to capture: VAT Lite with a completed date range.
- Required state: Use sample taxable sales and expenses that produce non-zero totals.
- Must include: Period filters, output tax, input tax and net summary.
- Redact or avoid: Real tax registration number or filing reference.
- Suggested caption: VAT Lite summarises recorded tax amounts for review; it does not replace professional filing advice.
Editor note: replace this complete placeholder with a responsive image and keep the suggested caption as the figure caption.
12. Reports, exports and logs
| Screen | Use it for | What to verify |
|---|---|---|
| Reports | Income, expense and balance summaries | Date range and whether all expected transactions are included. |
| Data & Export | CSV copies for review, migration or accountant handover | Open exported files and confirm the columns and encoding are usable. |
| Logs | Investigating email and workflow activity | Time, user, action and outcome. |
Perform a weekly review
- Review unpaid and overdue invoices.
- Confirm recent payments are linked to the correct invoices.
- Review newly captured expenses and attachments.
- Open reports for the week or month and investigate unexpected totals.
- Export critical records before major operational changes.
The business enters the next period with known receivables, recorded costs and reviewed exceptions.
Add this image immediately after completing or explaining the preceding section.
- Screen to capture: Create a three-panel composite using Reports, Data & Export and Logs.
- Required state: Use the same sample reporting period across all panels.
- Must include: Report filters and totals, export action, and an audit/log entry for a recent transaction.
- Redact or avoid: Export file paths, usernames if private, and sensitive customer details.
- Suggested caption: Use reports for review, exports for handover and logs for traceability.
Editor note: replace this complete placeholder with a responsive image and keep the suggested caption as the figure caption.
13. Corrections and controlled changes
- Correct master data such as an email address on the customer record before sending the next document.
- Do not delete a transaction merely to make a report look right. Determine whether it should be corrected, voided or replaced according to company policy.
- Do not create negative payments to imitate a refund in Free. Use an approved correction procedure or upgrade to Pro for credit-note/refund workflows.
- Keep a note of why a material change was made.
14. Daily, weekly and monthly routines
| Frequency | Routine |
|---|---|
| Daily | Create documents, record received payments, capture expenses, inspect failed email or duplicate warnings. |
| Weekly | Review overdue invoices, customer balances, unclassified expenses and backup status. |
| Monthly | Review VAT Lite, income/expense reports, statement balances, numbering and export key records. |
| Before upgrade | Back up database and uploads, export key records, then test after updating. |
15. Troubleshooting
| Symptom | Likely cause | What to do |
|---|---|---|
| Customer received wrong amount | Line item, discount or tax was entered incorrectly | Return to the draft or correction workflow, verify settings and issue the corrected document according to company policy. |
| Invoice remains unpaid after receipt | Payment was not recorded or linked to another invoice | Search the payment reference and record/link it correctly once. |
| Duplicate payment warning | The same reference or submission may already exist | Stop and inspect existing payments before retrying. |
| Expense attachment rejected | Unsupported type or file larger than 10 MB | Upload JPEG, PNG or PDF within the limit. |
| Statement balance surprises the customer | Missing period, duplicate record or unapplied payment | Trace every statement line to its source invoice/payment. |
| Back button returns somewhere unexpected | The browser session started outside Accounting or history was cleared | Use the related-page tabs or Category home, then continue the in-app workflow. |
16. Detailed quote and invoice field reference
| Field | How to use it | Common error |
|---|---|---|
| Customer | Choose the account responsible for payment. | Selecting a contact from a different company or duplicate record. |
| Issue date | Date the document is issued. | Using today when the approved issue date differs. |
| Valid until / Due date | Quote expiry or invoice payment deadline. | Leaving a date that conflicts with agreed terms. |
| Product/service | Reusable item supplying defaults. | Choosing a similarly named item with different tax/price. |
| Description | Specific scope shown to customer. | Using vague text that does not explain the deliverable. |
| Quantity | Number of units/hours/items. | Using 1 when the agreement is hourly or multiple units. |
| Unit price | Price per unit before line calculation. | Entering the total in the unit-price field and multiplying it again. |
| Line discount | Reduction on one line. | Applying both line and invoice discount unintentionally. |
| Invoice discount | Reduction on the document total. | Using it without recording the commercial reason. |
| Tax treatment | Whether and how tax applies. | Copying a previous line without checking current treatment. |
| Notes/terms | Customer instructions and conditions. | Putting private internal notes in customer-facing text. |
17. Status guide and next actions
| Status | What it means | Normal next action |
|---|---|---|
| Draft quote | Not yet formally sent. | Preview, approve and send. |
| Sent/viewed quote | Customer has been given access. | Wait, follow up or revise. |
| Accepted quote | Customer approved the proposal. | Convert the accepted version to invoice. |
| Rejected quote | Customer declined. | Record reason and revise only if commercially agreed. |
| Draft invoice | Not yet issued. | Review and send. |
| Unpaid invoice | Issued with full balance outstanding. | Monitor until due; follow up if overdue. |
| Partial invoice | Some payment recorded. | Collect remaining balance. |
| Paid invoice | Payments cover the balance. | No further collection; retain records. |
| Overdue invoice | Due date passed with balance remaining. | Verify account and perform payment follow-up. |
| Void invoice | Invoice cancelled under controlled procedure. | Retain history and issue replacement if necessary. |
18. First month tutorial: worked example
Scenario
Bright Path Consulting buys a website setup for 2,000 and monthly support for 500. The setup is quoted first. After acceptance, the business invoices the setup, receives a 1,200 part payment and later the remaining 800. During the month the business pays a 300 software expense.
Process the example from start to finish
- Create Bright Path Consulting and verify the billing email.
- Create Website Setup and Monthly Website Support services with the correct tax treatment.
- Create a quote for Website Setup at 2,000 and send it.
- Accept the quote in the public view and convert it to an invoice.
- Record the first payment of 1,200 using the real reference. Confirm the remaining balance is 800.
- Record the second payment of 800. Confirm paid status and zero balance.
- Create the 300 Software expense with its supplier receipt.
- Generate the customer statement for the month and verify invoice plus both payments.
- Open Reports and VAT Lite for the month and inspect the sales and expense totals.
- Export customers, invoices, payments and expenses for reference.
The customer account closes at zero, the expense is recorded in the same period and reports are traceable to source records.
19. How to investigate a balance difference
- Open the customer statement and write down the opening balance, invoices, payments and closing balance.
- Open each invoice and confirm its total, discounts, tax and payment links.
- Open Payments and search every bank/reference number.
- Check whether a part payment was entered as the full invoice total or vice versa.
- Check whether the selected statement date range excludes a payment.
- Check for duplicate customers where an invoice is on one record and payment on another.
- Correct the source record under approved procedure; do not type a balancing figure merely to force the statement to zero.
20. Customer communication templates: information to include
| Message | Include | Avoid |
|---|---|---|
| Quote email | Quote number, summary, validity and secure link. | Promises not contained in the approved quote. |
| Invoice email | Invoice number, issue/due dates, amount, payment method and secure link. | Unverified bank detail changes. |
| Payment reminder | Invoice number, original due date, outstanding balance and contact route. | Aggressive or legally misleading language. |
| Statement email | Statement period, closing balance and query contact. | Treating a statement as a replacement invoice. |
21. End-of-month operating checklist
Free month-end
- All issued invoices reviewed for correct status.
- Bank receipts recorded once and linked correctly.
- Customer balances and overdue list reviewed.
- All material expenses captured with available evidence.
- VAT Lite period reviewed and exceptions investigated.
- Income/expense reports compared to expectations.
- CSV exports stored securely.
- Database/uploads backup completed and verified.